Would You Pay Students for Doing Well?

Roland Fryer, a Harvard University economist known for his studies on racial inequality, has spent the last few years floating the idea of compensating students for high achievement—and now someone's finally interested.

New York City Mayor Michael Bloomberg has launched a cash incentive program aimed at "helping New Yorkers break the cycle of poverty." The pilot program, which begins in the fall, will allow fourth- and seventh-grade students across the city who perform well on standardized tests to earn money. A total of 40 yet-to-be-named schools will participate in the program, which "will test the effectiveness of small monetary incentives in reducing the educational achievement gap," says the mayor's office.

Students in the fourth grade will receive up to $25 for a perfect score on each of the 10 assessment tests taken throughout the year, while seventh graders can earn up to $50 per test. The money will come from private donations.

Not surprisingly, the proposal has met with some controversy, including the criticism that kids should enjoy learning without being paid for it.

Once the program is up and running, Fryer plans to track how students respond to being rewarded with cash.